Greece Infrastructure Report Q2 2016
BMI View: Overall, the long-term outlook for Greece's struggling construction sector remains bleak. While the country has successfully agreed a third bailout deal, economic growth will remain subdued, and significant structural weaknesses persist, exacerbated by ongoing political uncertainty. There is therefore little scope for public spending, and we expect private investment to be the sole source of growth throughout much of the forecast period. Key to this is the progression of highly unpopular privatisations of major state-owned assets, including transport infrastructure and key utilities. Although we expect some growth in the value of the construction sector over the forecast period, driven by projects such as the Trans Adriatic Pipeline (TAP), it will be more than a decade before the industry successfully regains 2013 value levels and even longer before pre-crash values are obtained. Latest Updates and Structural Trends
Privatisation looks set to proceed with the creation of a EUR50bn investment fund, into which the government will transfer state-owned assets, which will be either sold off or managed in order to fund debt repayments and economic reform.
In January 2016, the privatisation of Port of Piraeus was agreed after COSCO raised its offer from EUR293.1mn to EUR368.5mn for 67% stake. The deadline for final bids for the Port of Thessaloniki is by the end of February 2016.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook